Bei Jing Shang Bao·2025-08-06 13:24Core Viewpoint - Cathay Pacific reported a net profit of HKD 3.7 billion for the first half of 2025, a year-on-year increase of 1.1%, driven by growth in passenger capacity and volume, resilient cargo operations, and lower fuel costs [1][3][4] Financial Performance - The group's revenue for the first half of 2025 was HKD 54.309 billion, up 9.5% from HKD 49.604 billion in the same period of 2024 [4] - Earnings per share increased by 8.2% to HKD 56.7, compared to HKD 52.4 in the previous year [4] - Passenger revenue reached HKD 34.208 billion, a 14% increase year-on-year, with both passenger capacity and volume showing growth [3][4] Capacity and Demand - Available seat kilometers (ASK) increased by 26.3%, while revenue passenger kilometers (RPK) grew by 30% [4] - The number of passengers carried in the first half of 2025 was 13.6 million, averaging 75,300 passengers per day, a 27.8% increase year-on-year [7] - Load factor improved to 84.8%, up from 82.4% in the first half of 2024, with significant increases in North Asia, Southeast Asia, and South Asia [7] Yield and Challenges - Overall yield declined by 12.3%, with the Americas region experiencing the largest drop of 17.5% [7] - The decline in yield is attributed to increased market capacity and a shift in passenger composition as more transit travelers are expected as capacity recovers [7][8] Subsidiary Performance - Cathay's low-cost subsidiary, Hong Kong Express, reported a loss of HKD 524 million, compared to a profit of HKD 66 million in the same period of 2024 [9] - Hong Kong Express carried 3.8 million passengers, with a load factor of 78.9%, down from 85% in the previous year [9][10] Future Outlook - The management expressed optimism for the second half of 2025, anticipating strong passenger demand despite potential impacts from oil prices and global trends [1][8] - Cathay Pacific announced an additional order for 14 Boeing 777-9 aircraft, increasing its total order to 35, indicating confidence in future demand [8]